As the word suggests, this is a HR outsourcing arrangement under which the real employer handles all HR processes including recruitment, training, industrial relations, discipline etc but does not do the contracting. Instead the employees after recruitment are sent to the EOR provider who issues them with a contract. The EOR provider is therefore an employer only in the contract for purpose of Legal Contract Management. The EOR is the employer for all statutory purposes but not the employer for any other HR function.
The main objective of EOR is risk management and the real employer does not wish to bear the HR risks associated with employment and gets another professional HR firm to meet this risk.
The EOR will normally be paid in one cheque to cover employee salary, statutory deductions, tax administration expenses etc.
In some cases, the real employer even pays the employees and the EOR provider only gets a small risk management fee.
As an Employer of Records (EOR) Service Agency/Company in East Africa, we are able to customize a labour management solution for any sector/industry. We are one of the most respected Employer of Records (EOR) Service Agencies/companies in East Africa.